HB 192-PAYMENT OF FISHERY RESOURCE LANDING TAX  10:14:58 AM CHAIR SEATON announced that the final order of business would be HOUSE BILL NO. 192, "An Act relating to the filing date for the final quarterly payment of, and to the assessment of penalties under, the fishery resource landing tax." 10:15:11 AM CHARISSE MILLETT, Alaska State Legislature, introduced HB 192 and explained the intent behind the legislation, paraphrasing from the sponsor statement, which read as follows [original punctuation provided]: Currently, commercial fishermen are required to submit the resource landing tax by April 1st. The difficulty with this fixed date is that Department of Fish and Game does not always have the statewide average fish report by that time. Though the Department of Revenue does grant an automatic extension to file the landing tax return if the report has not been submitted within 30 days of the due date, there are no extensions for payment time. This results in penalties and interest to occur. For example, the 2011 list was not published until May 29, 2012. This results in in the accumulation of unfair penalties and interest to commercial fishermen. Commercial fishermen are also required to make equal quarterly payments. This means that in some instances, the current statute would require payment of 50% of the landing taxes before even leaving port. House Bill 192 makes necessary changes to the resource landing tax statutes. The first section aligns the due date for the resource landing tax with the date that the statewide average fish report is released. This is a long overdue remedy. The State of Alaska should not punish our fishing industry for the delay of information they have no control over. The second section of House Bill 192 still maintains that 100% of the previous year's tax liability or at least 90% of the estimated amount is owed. However, the requirement to make equal quarterly payments is deleted. Instead, the commercial fisherman is allowed to pay their quarterly tax based on their production and estimated price for that specific quarter. It only makes sense that a way of life as volatile as that of our commercial fishermen should have a tax structure that reflects those realities. House Bill 192 provides a tax regime that is equitable and fair. REPRESENTATIVE MILLETT reminded the committee of the volatile financial experience that is inherent to the fishing business. 10:19:23 AM CHAIR SEATON clarified that the bill relates to the business of fishing more than to the actual commercial fishing activity. He noted that an effective date is not stipulated, and asked whether a 90 day effective date, following bill passage, would be appropriate. REPRESENTATIVE MILLETT indicated that the Alaska Department of Fish & Game (ADF&G) would stipulate a date via regulation. REPRESENTATIVE FEIGE opined that an effective date would not be necessary to include in the bill. 10:22:29 AM TIM COTTONGIM, Fish Group Manager, Juneau Office, Tax Division, Department of Revenue (DOR), responding to the effective date question said a January 1 effective date would align with the tax year. 10:23:49 AM REPRESENTATIVE FEIGE moved to adopt the proposed committee substitute (CS) for HB 192, Version 28-LS0725\U, Bullard, 4/10/13. Without objection, Version U was before the committee. 10:24:14 AM MR. COTTONGIM pointed out that the CS allows businesses that are subject to a landing tax to elect of which of the three installment payment methods is preferable. The decision is due by March 31 of each year. He pointed out that the provision could not be honored in 2013 and said this default further supports a January effective date. CHAIR SEATON characterized the proposed legislation as a housekeeping bill, and asked if the system of tax collection will be better served by passage of HB 192. MR. COTTONGIM opined that the bill will serve the industry and the optional pay period should prove helpful. 10:26:54 AM REPRESENTATIVE FEIGE noted that the bill may not pass this session, and asked if the effective date could be retroactive to January 2014, if passed in the 2014 legislative session. 10:27:58 AM MR. COTTONGIM explained how tax reporting works on a quarterly basis, and said it would be possible for bill language to effectively stipulate a retroactive payment. 10:28:40 AM JULIANNE CURRY, Executive Director, United Fishermen of Alaska (UFA), stated unqualified support for HB 192. 10:29:11 AM KATHY HANSEN, Executive Director, Southeast Alaska Fishermen's Alliance, stated unqualified support for HB 192. CHAIR SEATON closed public testimony. 10:29:52 AM CHAIR SEATON offered Conceptual Amendment 1 to add an effective date of January 1, 2014. Without objection Conceptual Amendment 1 was adopted. 10:30:26 AM REPRESENTATIVE GATTIS opined that the bill is necessary and urged committee support. 10:30:54 AM REPRESENTATIVE FEIGE moved to report the CS for HB 192, Version 28-LS0725\U, Bullard, 4/10/13, as amended, out of committee with individual recommendations and the accompanying fiscal notes. Without objection, CSHB 192(FSH), was reported from the House Special Committee on Fisheries.